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What can I do after I filed a stop notice on a public works projects?

I am an owner of a dump truck with no contract with the prime contractor. I have not been compensated for the use of my dump truck and the labor to operate my dump truck. I filed a stop notice with the owner of the project back in December 2019. I have not received payment. The project is federal aided and there is a bond for the project.

1 reply

Mar 2, 2020

If a customer, the owner, or other project participants aren't taking a stop payment notice seriously, then threatening to enforce the stop payment notice might get their attention. And, using a document similar to a Notice of Intent to Foreclose might help on that front. Naturally, actually pursuing an enforcement lawsuit for a stop notice could lead to payment, too.

Other tools that can help to force payment

Below are some additional options which can help with payment recovery.

Invoice reminders and payment demand letters

For one, something as simple as sending invoice reminders might prod a customer into doing the right thing and paying their invoices. Certainly, invoice reminders might not always do the trick - but most companies want to pay their vendors, and providing a regular reminder they've failed to do so might be enough to get paid. Further, keep in mind that making legal threats to a customer can accelerate payment, too. By sending a customer a strong payment demand letter, a claimant can inform them that nonpayment isn't an option and that legal claims will soon be on the table if payment isn't made.

Payment bond claim

If a payment bond is present on the project, then it might be wise to pursue a payment bond claim in addition to other claims. When a payment bond claim is made, the surety receiving the claim is required to investigate the claim, and that may well lead to payment from the surety. But, even if it doesn't, having made that claim will help down the line of legal claims become necessary because filing suit against the bond would be one more potential claim in your back pocket. More on CA bond claims here: How to File a California Payment Bond Claim.

Additional legal claims

In addition to potentially enforcing a stop payment notice, pursuing other legal claims could be an option, too. Claims like breach of contract or claims under the California prompt payment laws could be on the table. If legal claims will be pursued, then it'd be wise to consult a local California construction attorney for help there. Though, if the claim is under $10,000, taking the case to small claims court could help to streamline things.

Collections

Sending a debt to collections could help to recover payment, too. Levelset has this article on top collections agencies, and you can contact California collectors, here: Construction Collectors in California.

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